European Court Strikes Blow to EU-US Data Pact

Cloud computing is big business in the United States.

Huge data factories litter landscapes from Delaware to California, buzzing with the details of customers from all over the world.

But could the plug be pulled on some of the servers?

An agreement that allowed major technology companies to send personal data from the European Union to the US has been ruled invalid.

The European Court of Justice decision is the result of a legal challenge bought by Austrian privacy campaigner Max Schrems.

He argued that the deal allowed social networks and other firms to give Europeans' personal data to spies from America's National Security Agency.

He said the ruling meant the "Safe Harbour" agreement needs changing fast. The European Commission says it is now working with the US authorities to try and find a solution,

Jennifer Baker, EU correspondent for The Register, a tech magazine in Brussels - told us more about why the safe harbour agreement was set up in the first place.

And Dan Castro is Vice President of the US Information Technology and Innovation Foundation. He told us the ruling will make business tricky for transatlantic tech firms.